U.S. Rep. Hansen Clarke of Detroit on Thursday introduced a sweeping bill that would forgive outstanding student loan debt for Americans who have made payments equal to 10 percent of their discretionary income for 10 years.

"This provides student loan borrowers with a second chance, those who have been struggling financially," Clarke told his colleagues on the floor of the House. " And by cutting this debt, this frees up their money to invest on their own. That will create new jobs throughout this country.

"It's time for Congress to stand up for the rights of student loan borrowers. It's time to forgive these student loan debts."

The legislation, HR 4170, would amend the Higher Education Act of 1965 by giving borrowers the option to enter the 10/10 loan repayment plan. Discretionary income, in this case, appears to be defined as any annual income exceeding 150 percent of the poverty line for an individual or family.

The legislation also would cap interest rates on federal loans at 3.4 percent, and allow graduates who enter public service professions -- such as teaching and firefighting -- to have their loans forgiven in five years instead of ten.

Clarke, a freshman Democrat representing Michigan's 13th district but running for re-election in the crowded 14th, has been hinting at the possibility of such legislation for several months, arguing that personal debt is a larger threat to the national economy than federal debt.

As introduced, the bill does not have any co-sponsors and surely will face an uphill battle in the Republican controlled Congress. But along with his Detroit Jobs Trust Fund bill, it's another example of out-of-the-box thinking by Clarke.

Update: Some commenters have asked whether there is a cap on the amount of debt that can be forgiven. Here's what Clarke's office has to say: "While current borrowers would be eligible for full forgiveness under the plan, future borrowers would be subject to a $45,520 cap on forgiveness (based on the average overall cost of a four-year degree at a public university). The aim is to incentivize students to be mindful of educational costs and for colleges and universities to control tuition increases."